Ralph Lauren third-quarter profits meet estimates

CBS.MarketWatch.com

NEW YORK (CBS.MW) -- Shares of Polo Ralph Lauren Corp. fell 5 percent Tuesday after the company said it met Wall Street earnings' expectations for the third quarter, but will incur apre-tax charge of about $65 million in the fourth quarter due to an extensive restructuring program.

The maker of apparel and other products such as bedding and fragrance (RL)
RL, -0.10%
said it registered earnings of $25.4 million, or 25 cents a share, in the third quarter compared to the $29.3 million or 29 cents earned in the year-earlier same quarter. Analysts surveyed by First Call expected the company to earn 25 cents.

Shares of Ralph Lauren fell 1 5/16 to23 1/4.

The $65 million fourth-quarter charge for restructuring will include costs from the closing of nine retail stores and the cutting of about 250 worldwide jobs, about 4.3 percent of its workforce, the company said.

Polo Ralph Lauren said it expects the restructuring to generate $15 million to $20 million in pre-tax savings for fiscal 2000.

The company said its third-quarter sales rose 10 percent to $395.4 from the year-earlier quarter, improving after the difficult fall and holiday seasons it experienced.

In a separate statement, Polo Ralph Lauren said it's signed a license agreement with Pennaco Inc., a subsidiary of Danskin Inc., to make luxury hosiery under the Ralph Lauren Collection and Lauren Ralph Lauren labels.

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